Fringe benefits are a form of compensation for employees. They are aimed at boosting employee motivation and providing an incentive by offering individual choices. Fringe benefits have lower tax implications compared to salaries, and are a cost-efficient form of benefit. Fringe-benefit elements can be classified into three groups:
- benefits that are fully tax-free,
- benefits that pay preferential tax, and
- other benefits.
Net benefits at a lower cost — fringe benefit consulting can help
When creating a fringe benefit system, the company defines the framework, the available options and the associated system of conditions. The flexible structure offers the advantage of allowing employees to choose according to their own life situations, needs and motives. The system is capable of providing more net employee benefits at a lower cost. Meanwhile, a well-designed fringe benefit system enables the company to save on taxes and contributions.
To achieve these savings, the system must be thoroughly prepared and designed. We can help you create the right statutory and legal elements of your fringe benefit system and apply them in practice.
The fringe benefit system can be adjusted to your current financial situation, while usage can be measured and monitored continuously. In a transparent fringe benefit system, employees know the value of the elements as well as their available allowance, so they can easily select the combination that meets their individual needs.
When introducing your fringe benefit system, during the initial stage we offer useful advice based on practical experience for compiling and creating your policy, and for designing your system.
Our fringe benefit consulting experts also provide proactive assistance and support for administrative functions such as processing declarations, transfers and distribution of vouchers.